HR 2202 Lecture Notes - Lecture 2: Procedural Justice, Distributive Justice, Human Capital
Document Summary
You set up differentials where you require more knowledge, value. There is a level of pay, the differentials increase as the amount of skills increase. Differential in percentage, consultant engineer makes 30% more than a regular engineer. Becomes important when you look at the external market. Job-based structure relies on the job content. Person-based structure skills, knowledge, competencies an individual has. Hard to separate two concepts in reality. Job based will require specific job descriptions and can be rigid in nature (not my job) Person-based has flexibility and supports pay for knowledge. Can create inequities on individual performing similar work. The more you pay the more people will apply to the job. The more jobs on the marker the more pay is; market determines pay. More unions you have the higher pay. Pay in (4) different formats: (1) pay higher than competitor you will get more skills; (2) pay less, employ more; (3) pay less increase your shares; (4) blackberry.
